1. Financial Status Reporting (FSR) & Final Invoices using the Award Reconciliation & Review Tool 1 November 30, 2015

2. Welcome Introductions – Name – Role – Department – Length of service with Emory Logistics – Restrooms – Breaks – Laptops November 30, 2015 2

3. Learning Objectives As a result of participating in this Financial Status Reporting (FSR) & Final Invoices using the Award Reconciliation & Review Tool (ARRT) course, you will: Understand the overall FSR/Final Invoice process for Emory University Understand the role of RAS and FGC in the FSR/Final Invoice process Know how to use the ARRT 3 November 30, 2015

4. Agenda Overview – NIH Payment Process Change – FSRs and Final Invoices – Roles and Responsibilities – Process Using ARRT – Navigation – Examples – Practice Routing and Approval 4 November 30, 2015

5. NIH Transition to New Payment Process NIH Notices NOT-OD-16-028 NOT-OD-13-120 NOT-OD-15-105 NOT-OD-13-112 NOT-OD-14-103 NOT-OD-13-111 NOT-OD-14-093 NOT-OD-13-079 5 November 30, 2015

6. What is Occurring?  NIH issued a Grants Policy Notice announcing the transition to a new method of drawing down funds on grants designated as “Letter of Credit”.  Most NIH awards are under this designation  Grants will have individual subaccounts for payment in the new system  During federal FY14, NIH began issuing all new awards under the new system.  During federal FY16, NIH will transition all remaining active awards with end dates after September 30, 2016 to subaccounts for drawdowns. 6 November 30, 2015

7. FFY14 Transitional Impact OGCA (now FGC) was required to draw down via two methods and provide quarterly reports for both methods Awards were issued under the new system. Compass modifications were made to support this. These changes were transparent to the research community. These awards do not appear any differently than other awards received in the past. FFY14 Transitional 7 November 30, 2015

8. FFY16 Transitional Impact on Awards For awards received prior to FFY14 funding that are in the middle of their life cycle, the following will be required: – A FFR (financial report) must be submitted to NIH to close out the year that ends in FFY16. – NIH will issue the continuation under the new system (including any unspent funds reported on FFR). FFY16 Transitional 8 November 30, 2015

9. For Example:  NIH Five year award, 11/01/12 to 10/31/17 – Total funding is $500,000 ($100,000 per year) Award was issued with typical financial reporting requirements which require an FFR at the end of five years – Year 3 will end in FFY16 on 10/31/15 – Expenditures at the end of year 3 are $280,000  FFR will be submitted to NIH for the period ending 10/31/15 for $280,000  NIH will authorize $120,000 for year 4 ($100,00 plus carryover from year 3) FFY16 Transitional 9 November 30, 2015

10. *Important to note: An additional FFR is only required in transitional year (FFY16), so an FFR would be required at the end of 3 and 5 in previous example. No new grant application is required. This is a financial transition only. NIH defines the transition as an “administrative stop”. Trailing charges may be reported in the year they post to ledger if they are not material. Subaward invoices should be expensed in the correct period. If the award was originally issued with carryover authority, special carryover approval is NOT required to move the unspent funds from the transitional period to the continuing award. No change to progress report due dates. NIH stated that all agencies under DHHS were mandated to make this change. FFY15 Transitional 10 November 30, 2015

11. Challenges New Awards/Projects/SmartKeys will need to be setup for every active DHHS award including all NIH awards issued prior to 10/1/13 and ending after 9/30/16. – This results in the need to: Correct salary records Close current sub awards and issue new purchase orders Update feeder systems Possibly move expenses between projects Heavy volume of FFRs and Compass Closeouts requiring significant additional effort from Departmental Administrators, RAS Unit Staff, FGC and PIs Approximately 206 new awards will require setup of projects/SmartKeys, as well as reporting and closeout. PMS Transition Team is assisting by completing PAN requests, preparing reports and closeout. The contact is Kim Rowell in RAS Central. FFY15 Transitional 11 November 30, 2015

12. Impacts Beyond the Next Year Increased effort required to drawdown funds. Funds must be drawn down within 90 days of the end of the award. – Funds are no longer available on 91 st day. – FFRs must be submitted on time. Ongoing 12 November 30, 2015

13. Other Considerations For subawards we receive (with federal pass through funding), we must ensure that all expenses are on project by 30 days and that they are invoiced by 45 days. For subawards we issue, we must ensure that we have final invoice from our sponsors in 45 days. Core Facility and other feeder charges need to ensure that their charges are processed timely and correctly (within 30 days). Ongoing 13 November 30, 2015

14. FINANCIAL STATUS REPORTS November 30, 2015 14

15. Definition/Description A Financial Status Report (FSR) is a statement of expenditures sent to the sponsor of a grant or contract. It is prepared in collaboration with the department and submitted by the Office of Finance Grants & Contracts (FGC) on behalf of the Principal Investigator (PI). – The schedule for submitting required financial reports is generally specified in the award documents of a grant or contract. – FSRs may be due at the end of the Budget Period, Project Period and/or award period normally due within 90 days after the expiration date, and may be required at interim times as well. A Federal Financial Report (FFR) is required for recipients of federal funds to report the status of funds for grants or assistance agreements. 15 November 30, 2015

16. FSR Types TypeDescription Interim FSR (IFSR)An Interim FSR is a financial report that covers a specified period (i.e., monthly, semi-annually). Sponsor dictated. Quarterly FSR (QFSR)A Quarterly FSR is a financial report that covers a 3 month period. Can be calendar quarters or budget quarters. Annual FSR (AFSR)An Annual FSR is a financial report that typically covers a one-year period. Final FSR (FFSR)A Final FSR is a financial report that is prepared at the end of an award. 16 November 30, 2015

17. ARRT FOR FINAL INVOICES November 30, 2015 17

18. Contract Bill Plan Types CR_LOCCost-Reimbursable Letter of Credit CR_NON_LOCCost Reimbursable NON Letter of Credit AUTO SCHED PAYAuto Scheduled Payment SCHED PAYScheduled Payment SCHED PAY TASKScheduled Payments – Task HYBRIDSPart FIXED fee and Part Cost Reimbursable CLINICAL TRIALS Used for all awards where the research purpose has been defined as Clinical Trial. DEPT TO INVOICE Used for awards where the Department is responsible to bill for items, not on ledger. OTHERThis type represents all other contracts not identified as CR_LOC, CR_NON_LOC, SCHED-PAY, Hybrids, or Clinical Trials. 18 November 30, 2015

19. o Review FSR/Final Invoices o Confirm final reportable financial expenditures with RAS/Department. o Update the FSR/Invoice Milestone page. o Approve and Submit FSR/Final Invoices o Post Submission: o Upload FSR/Final Invoice into Compass and the I: drive. o Make any necessary budget adjustments to final expenditure amount, final changes to billing limit and make any necessary F&A adjustments. Roles and Responsibilities RAS o Check for No Cost Extensions (NCE) (Final FSR/Invoice). o Notify FGC if NCE has been requested and/or approved o If no NCE, review the award terms and conditions and agency guidelines. o Reconcile subcontract balances. o Prepare the FSR/Final Invoice package using ARRT o Remove Deficits o Ensure final reported expenditures = ledger o Submit the package for approval to FGC o Post Submission o Process Residuals – transfers or refunds to sponsor FGC 19 November 30, 2015

20. FSR Transition April 15, 2014 20 September 1, 2015 4 RAS Units transitioned – Peds, DOM, C&I, RSPH – New Responsibilities Responsible for preparation and submission of all quarterly/interim FSRs Complete Federal FFR in ARRT Annual and Final FSRs FGC only processing high level review of ARRT and FSR before submission – PMS access to complete FFR PMS job aid – FFR job aid February 1, 2015 2 RAS Units will transition – Basic Science, Yerkes Remaining RAS Units (ABOSS, ECAS, Hospital Services) transition after a year

21. Process Map – FGC Website: OGCA.emory.edu – Training (top) – Training Documents (left) – ARRT Training Materials November 30, 2015 21

22. Questions? November 30, 2015 22

23. DEMONSTRATION AND PRACTICE November 30, 2015 23

24. FSR Milestones Query Run the FSR Milestones Query, using the Job Aid: FGC website (OGCA.emory.edu) Training tab Training Documents ARRT Training Materials November 30, 2015 24

25. FSR Checklist November 30, 2015 25 Pull up FSR Checklist: FGC website – (Ogca.emory.edu) Training tab Training Materials ARRT Training

26. FSR RECONCILIATION PROCESS: AWARD RECONCILIATION & REVIEW TOOL (ARRT) November 30, 2015

27. NAVIGATE What is ARRT? 27 An Excel template with the following tabs: A total award tab that aggregates every project, including manual adjustments. A tab for each project that looks somewhat similar to the existing SPP2242 report. A tab that shows subtotals by account code for each project on the award. Each line will also be tagged with the account code summary description that the SPP2242 uses. A tab with all transactions on the award, for reference. The Project tabs will have the following features: A filter that lists expense account codes that are normally disallowed as direct charges to federal grants. (e.g., alcohol, employee parking, facilities, general office supplies, etc.) The list of account codes ‘normally disallowed’ will be stored in the template and easily edited by the user Any expenses on the list of normally disallowed will be displayed on each project tab. A filter that lists direct expenses normally excluded from the F&A calculation. The list of account codes ‘normally excluded’ will be stored in the template and easily edited by the user. Any expenses on the list of normally excluded will be displayed on each project tab. Columns for manual adjustments on each project tab, with automatic roll-up to the Award tab. Manual adjustments clearly identified so that corresponding journal entries can be made in Compass. November 30, 2015

28. Save the reports to your working folder 28 Overview of the Process a)Open Template (use the latest version of the template on OGCAs website) b)Import the two Compass reports using the buttons in the Template c)Go to the first Project Tab, inspect and reconcile d)Add adjustments where necessary e)Repeat for each project f)Go to the Award Tab and inspect for completeness g)Go to FFR form page for draft output (Federal Awards Only) h)Use the list of adjustments to determine journal entries required Run two reports to generate the raw data needed by the Template Make journal entries for adjustments 1 2 3 In Compass In Excel (See Job Aid for details) In Outlook 4 Send to appropriate FGC Team Helpdesk for review In Outlook 5 November 30, 2015

29. a. EUOGC16A - By account code for each project, budget, actual, encumbrances, resources NAVIGATE - Overview of ARRT 29 b. EUOGC16B - All transactions on the award – can be filtered & sorted as required 3 In Excel November 30, 2015 1. Import two Compass Reports 2. Go to each project tab - inspect and reconcile, add adjustments as needed. 3. Go to the award tab and inspect for completeness. 4. Go to the FFR Form.

30. Navigate – Overview of ARRT (NEW SLIDE) FSR425 Form Summary Instructions (where you also import the two reports from Compass) Account Codes EUOGC16A – Subtotals by project EUOGC16B – All Transactions on the award for the selected project Award Summary Project Summary Project Breakdown Project Test Sheet Tabs for each Project April 15, 2014 30

31. NAVIGATE the project tabs – 1 (top section) 31 3 In Excel Header Direct costs per MTDC Base Costs not in MTDC F&A calcs November 30, 2015

32. 32 NAVIGATE the project tabs – 2 (bottom section) 3 In Excel Reconciling F&A calculation on projects that do not use the MTDC cost Base will require manually adjusting between these two regions of the tab. List of questionable account codes that are normally disallowed as direct cost. Total found in Compass will be shown in red text. Make a note of each adjustment - useful if you need to revisit the reconciliation and to have a list for journal entries into Compass. This will also inform others. November 30, 2015

33. 33 Project tabs present data aggregated by “expense category” (categories that are [bracketed] will be in catch-all) The expense categories are the same as for SPP2242. They are stored, and maintained, within Compass. Salary Expense Fringe Consulting Services [Computer Services] Supplies Travel Other Expense [Publications] [Patient Care Costs] Subcontracts Human Subject Expenses (a/c code 68715 only) [Participant support costs] Animal Costs [Alterations/renovations] Equipment [Tech services] November 30, 2015

34. NAVIGATE the Project Breakdown tab 34 3 In Excel These columns are to help you reconcile the F&A charged to the sponsor if there is more than one F&A rate Sum up the Base and F&A charge for each agreed % rate by entering the % rate in the first colum of the table at the bottom Enter the rates that you want to sum up in the first column of this summary table. This pulls some key data from the project tabs and also summarizes by F&A rate November 30, 2015

35. NAVIGATE the Project Summary tab 35 3 In Excel These columns are to help you reconcile the F&A charged to the sponsor if there is more than one F&A rate Sum up the Base and F&A charge for each agreed % rate by entering the % rate in the first colum of the table at the bottom One column for each project shows the actual expenses in Compass November 30, 2015

36. Save the reports to your working folder 36 Overview of the Process a)Open Template (use the latest version of the template on OGCAs website) b)Import the two Compass reports using the buttons in the Template c)Go to the first Project Tab, inspect and reconcile d)Add adjustments where necessary e)Repeat for each project f)Go to the Award Tab and inspect for completeness g)Go to FFR form page for draft output (Federal Awards Only) h)Use the list of adjustments to determine journal entries required Run two reports to generate the raw data needed by the Template Make journal entries for adjustments 1 2 3 In Compass In Excel (See Job Aid for details) In Outlook 4 Send to appropriate FGC Team Helpdesk for review In Outlook 5 November 30, 2015

37. Save the reports to your working folder 37 Overview of the Process a)Open Template (use the latest version of the template on OGCAs website) b)Import the two Compass reports using the buttons in the Template c)Go to the first Project Tab, inspect and reconcile d)Add adjustments where necessary e)Repeat for each project f)Go to the Award Tab and inspect for completeness g)Go to FFR form page for draft output (Federal Awards Only) h)Use the list of adjustments to determine journal entries required Run two reports to generate the raw data needed by the Template Make journal entries for adjustments 1 2 3 In Compass In Excel (See Job Aid for details) In Outlook 4 Send to appropriate FGC Team Helpdesk for review In Outlook 5 November 30, 2015

38. Practice Compass – www.compass-login.emory.edu www.compass-login.emory.edu Most up to date ARRT template – On FGC’s website (www.ogca.emory.edu)www.ogca.emory.edu Forms ARRT November 30, 2015 38

39. Questions? November 30, 2015 39